Anti‐Smoking Policies and Smoker Well‐Being: Evidence from Britain1. (12th October 2015)

• Record Type: Journal Article
• Authors: Leicester, Andrew; Levell, Peter
• Is Part Of: Fiscal studies. Volume 37:Number 2(2016)
• Page Start: 224
• Page End: 257
• Publication Date: 2015-10-12
• Subjects: smoking -- taxation -- happiness -- well‐being -- time inconsistency -- commitment -- D03 -- D12 -- H23 -- H31; Finance, Public -- Periodicals; Fiscal policy -- Periodicals; Economic policy -- Periodicals; Finance, Public -- Great Britain -- Periodicals; 336.3
• DOI: 10.1111/j.1475-5890.2015.12063
• Languages: English
• ISSNs: 0143-5671

Abstract

Abstract: Anti‐smoking policies can in theory make smokers better off, by helping smokers with time‐inconsistent preferences commit to giving up or reducing the amount they smoke. We use almost 20 years of British individual‐level panel data to explore the impact on self‐reported psychological well‐being of two policy interventions: large increases in tobacco excise taxes and bans on smoking in public places. We use a difference‐in‐differences approach to compare the effects on well‐being for likely smokers and non‐smokers. We find robust evidence that increases in tobacco taxes raise the relative well‐being of likely smokers. Exploiting regional variation in the timing of the smoking ban across Britain, we find no evidence that it raised smoker well‐being. Our findings give some support to the view that tobacco taxes are at least partly justifiable because of the benefits they have for smokers themselves.